Rek Your Cheque: Breakdown of sona speech

Does Sona 2021 mean anything in the real world?

President Cyril Ramaphosa delivered the 2021 State of the Nation Address (Sona) in Parliament on Thursday, 11 February.

Due to the Covid-19 pandemic and subsequent lockdown restrictions there was no red carpet and fancy outfits at Sona this year, and President Ramaphosa took to the podium after a candle lighting ceremony in honour of those who have died of Covid.

One can argue that whatever gets said at Sona every year, is just to make the government feel good about themselves, and that ordinary South Africans never really see the fruits of the promises that get made.

Statistics show that 4 in 5 South Africans (80%) have had their finances negatively affected within the last year – yet this does not include politicians.

Their salaries have not been affected, so their promises leave a bitter taste in my mouth right now.

Here are some key points from Sona 2021:

1. Covid vaccine

The first phase of the vaccination - for health workers - will be done using the Johnson & Johnson jab. SA has acquired 9 million doses and the first batch of 80 000 is expected to arrive in the country this week.

Financial relief measures

More than 18 million South Africans have received additional social grant payments, lifting 5 million more people above the poverty line.

R57 billion in wage support has been paid to more than 4.5 million workers to protect jobs.

Businesses in distress have received R70bn in tax relief and R18.9bn in loans through the Loan Guarantee Scheme.

2. Unemployment

Over the past year, South Africa has experienced a sharp decline in growth and a significant increase in unemployment.

In the third quarter of 2020, our economy was 6% smaller than it was in the last quarter of 2019.

There were 1.7 million fewer people employed in the third quarter of 2020 than there were in the first quarter, before the pandemic struck.

3. Youth Employment

6000 UIF beneficiaries were provided with learning opportunities and 24 049 artisans were produced during the financial year ending March 2020.

4. Small business development

The Department of Small Business Development has designed a Blended Finance Programme (BFP).

As part of the programme, R292m was approved for disbursement to SMMEs.

48 SMMEs benefited from the funding, contributing to the creation and maintenance of 1873 jobs.

5. Gender-based Violence

Three key pieces of legislation were introduced in Parliament last year to make the criminal justice system more effective in combating gender-based violence.

Last year, Cabinet also approved a policy that 40% of public procurement should go to women-owned businesses and the president said several departments have started implementing this policy and are making progress.

Grants

6. SRD R350 and TERS

Sassa said it has processed in excess of 9,6 million applications each month from May 2020 to January 2021 and has paid more than 6,5 million grants per month.

The total amount spent on this grant has exceeded R16bn.

The R350 Social Relief of Distress grant has been extended by a further 3 months.

The Covid-19 TERS benefit has been extended until 15 March 2021, but only for those sectors that have not been able to operate during the lockdown.

Meanwhile, Sassa released a statement on Friday to provide an update on the SRD R350 grant extension.

Here are five issues beneficiaries should be aware of:

1. There is no need to go to a Sassa office; all SRD processes are done online. Any amendments on your application can be made at https://srd.sassa.gov.za/

2. Those who have already received this grant and are in the system, need not reapply.

3. All clients who have been paid through the post office should get bank accounts, and upload those details on the system.

4. Every application will be considered and validated monthly as has been the case, and if approved will be paid.

5. Clients whose applications for the Special R350 Covid-19 SRD Grant were declined can lodge an appeal for review on the Sassa Covid-19 at https://srd.sassa.gov.za/

Declined applicants who already lodged appeals need not reapply or re-appeal.

Sassa said: “Sassa reassures all citizens who had their Special Covid SRD R350 grant approved but not yet paid by end January will still be paid through the existing payment channels, namely the South African Post Office, direct deposits into bank accounts or money transfers to cellphones, as requested by the approved applicants.”

People are struggling. I sincerely hope that Sassa does not mess up this extension process. Rich politicians might be able to afford it, but ordinary South Africans simply can’t.

*Moeshfieka Botha is Head of Research and Consumer Education at National Debt Advisors. For more debt and personal finance information visit www.nationaldebtadvisors.co.za